A40 3.70% 13.0¢ alliance mineral assets limited

Presence: Mark Turner, Mark Calderwood,Geoff McNamara, Bob...

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    Presence: Mark Turner, Mark Calderwood,Geoff McNamara, Bob Vassie, Joshua Ong, Vicki Xie (phone), Ron Chamberlain, AlexeiFedotiv, Beverley Nichols

    1) Wastold upfront that video and audio recording is not allowed. I guess they doread hotcopper and knew someone had asked for recording.

    2) Thevoting of 13 resolutions went ahead and no results was revealed, as they needto consolidate the results from ASX and SGX shareholders. Results will bepublished via SGX/ASX later.

    3) Notmuch additional information were shared, on top of the presentation materialsannounced by the company. In summary

    a. Production – Alliance entering into steadystate production since Jan (approx. 13kt per month). On track for 150-160kt forCY2019. 180kt guidance provided earlier was based on fines circuit commissioningin Q3. Now FC is scheduled for commissioning end CY2019. Target for CY2020 isto be producing 20kt per month.

    b. Cash Cost – should be lower than Q1 USD550/t,need to wait for Quarterly Activities Report for all the details.

    c. Stockpile on 1st July 2019estimated to be ~30kt

    d. Shipment – June shipments delayed due to customerside LC issues. Company is working on scheduling shipment for 20thJuly or 28th July. Another shipment in Aug.

    e. Finance – cashflow will continue to be tightin H2CY2019 (until we can produce more). Thereafter, H1CY2020 target to fullypayoff $40m debt. Currently finance charges about A$600k per month. Separatelyworking on possibility of refinancing the debt.

    f. Hydroxide JV – advance stage. Lots of workalready happen on sorting tax, audit etc. 1 more week to finalise main terms. Estimatingto sign within 1 month. What’s interesting is that Alliance will likely be paidupon spodumene landing in China and not wait till the sale of hydroxide – hencenot much funding lag (still in discussion though). And the JV will beincorporated outside of Australia & China.

    g. Offtakes – still in discussion with multiple largeentities but very slow and cautious. Some had already made 3xsite-visits.Envisage 1xChinese offtaker, 1xKorean offtaker, 1xJapanese. I believe Alliance isnow very careful in not wanting to give timelines (as not everything is withinour control) and hence, rather non-committal in public in terms of date.

    h. Drilling – has been slow, though finishing upin-fill and starting step-out drilling. Hoping to incorporate reserve upgradein Annual Report (early Oct) but Mark did express slight hesitation whetherthat can be met.

    i. Others – currently, there’s some tantalum thatstill goes into the lithium concentrate that we shipped (awaiting thecommissioning of the T3 tantalum circuit to extract them, part of the finescircuit and DMS plant upgrade). Estimated about US$50 of tantalum per ton ofspod we shipped.

    j. Others – feedback was given to Alliancemanagement on transparency and timely information given. Company will aim toprovide a mid-quarterly update for shareholders.


    that's all I have....
 
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